New homes sales retreated in June from
the very strong performance reported for May; a performance that
turns out to have been less strong. A joint release from the Census
Bureau and the Department of Housing and Urban Development this
morning put June sales of newly constructed single family homes at a
seasonally adjusted annual pace of 406,000 units. This represents an
8.1 percent drop from the revised May rate of 442,000. May sales
however were originally estimated to be at the rate of 504,000 units
which would have been an 18.6 percent increase over April and, the
report said, the most rapid increase in 20 years.
June sales were also down, by 11.5
percent year over year. Those sales were estimated at
On an unadjusted basis there were
38,000 new homes sold in June, down from 42,000 in May and 43,000 a
year earlier. Unadjusted May sales were originally estimated at
There were an estimated 197,000 homes
for sale at the end of June, a 5.8 month supply at the current rate
of absorption. One year earlier there was an estimated 4.2 month
supply. Homes that sold in June were on the market an estimated 3.4
months, unchanged from May but substantially below the 4.2 months
required for marketing a year earlier.
The median price of a new home sold in
June was $273,500 compared to $259,800 in June 2013. The average
price was $331,400 compared to $306,100 in the earlier period.
Sales in every region were lower than
in May; 20.0 percent in the Northeast, 8.2 percent in the Midwest,
9.5 percent and 1.9 percent in the South and West respectively. The
Midwest had the only year-over-year increase, up 19.6 percent from
the previous June. Sales in the Northeast declined 27.3 percent and
were down 17.4 percent in the south and 9.4 percent in the West.